Los Angeles –– CBRE announced the sale of Elements 616, a 105-unit luxury multifamily complex in Redondo Beach, Calif., to a Los Angeles-based private investor, for $74.5 million.
CBRE’s Dean Zander and Stewart Weston represented the seller, Ideal Capital Group. The buyer, a local family trust in a 1031-exchange, was represented by Ryan Rembert & Mason Rowland with KW Commercial.
Located at 616 Esplanade just steps from the beach, Elements 616 sits on 1.2 acres and encompasses 81,647 sq. ft. Since 2013, the complex has undergone $25 million in unit interior and common area renovations.
“Elements 616 was completely reimagined by Ideal and is a well-positioned coastal multifamily asset that appealed to many California investors,” said Zander. “The proximity to Silicon Beach, its irreplaceable location, combined with the scope and quality of the renovations were a huge draw for the new owner.”
Elements 616 features resort-quality amenities, upgraded interiors, and exceptional water views from approximately 40 percent of the units. The complex’s 105 apartments average 778 sq. ft. and include 16 studio/studio lofts, 14 one-bedroom units, 25 one-bedroom den and/or lofts, and 21 two-bedroom units.
Common amenities include upgraded residents lounge, pool area, fitness center, laundry room and elevator cab. The complex also features a 157-space subterranean parking garage.
“The complex is a best-in-class, pride-of-ownership asset that still offers value-add potential that proved extremely attractive to area investors,” said Weston.
Ideal Capital Group acquired the property in May 2019 as a value-add repositioning opportunity and completed substantial renovations and rebranding in 2020.
“Despite high area median incomes, South Bay home prices make renting an incredibly attractive option—especially renting a top-tier beachside community like Elements 616,” said Kevin Conway of Ideal Capital. “By renovating, rebranding, and upgrading Elements, our team was able to create tremendous value for our investors and the community at large.”
The complex still includes a handful of “classic” units that offer its new owners the chance to continue the renovation program.
Mason Rowland of KW Commercial added, “We are grateful to have assisted our client in this amazing acquisition. He began his career in real estate 40 years ago dreaming of one day owning such an asset. We are so happy we got to be a part of that dream coming true.”
He added, “Our client has strategically upgraded his portfolio and had perfect equity placement from the sale of his down-legs to acquire this iconic asset.”
Element 616 trades hands at a time when multifamily investment volume is breaking long-term trends and outperforming the industrial sector, according to CBRE Research. In 2021, the sector accounted for nearly half of all sales volume. Moreover, high-growth sunbelt markets saw the greatest decline in multifamily cap rates relative to historic levels and are poised for stronger rent growth.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
